Savvy Shopper: Going green is a great idea, but not quite yet

In previous columns, I have written about ways to save money on energy. Some readers who have taken an interest in the subject have asked me about home solar and wind power.

On a general level, I have always been intrigued by alternative energy and consider it a viable long-term option. For a variety of reasons, I am less than sanguine in the short run. Along with cost, there are many factors that make economical home grown power challenging in Lubbock.

■ Utility Rates — In 2002, Texas embarked on deregulating electric utilities and ushered in an era of rapidly rising prices and rate plans every bit as complicated as those offered by a cell phone providers. Fortunately, Lubbock was exempted from this scheme and enjoys some of the lowest rates in the state. Although inexpensive electricity is an unqualified benefit, it ironically diminishes renewable energy’s prospects. Where solar panels might be economically feasible if prices are running at 20 cents per kilowatt hour, a rate half as much can represent a death sentence.

■ Incentives — States like California have been very aggressive in promoting green energy. When you consider that their incentives include tax breaks and subsidies provided by both the state government and utilities, home-based energy can pay off. In Lubbock, we simply don’t have these kinds of inducements. While federal tax credits are still available, they are being phased out and are not enough to render solar or wind economical.

Although a lack of incentives is disappointing, I will take inexpensive electricity over subsidies every time.

■ Buy Back — As green power production varies with the availability of wind and sun, there are many times that a home system’s output exceeds what is needed. To capture this excess energy, some systems include batteries. A major problem is that such additions are expensive and add complexity. To help potential owners avoid such cost while capturing this power, some municipalities and states require that utilities buy back excess energy. An additional benefit to this requirement is it helps make such systems more financially feasible. While South Plains Electric Cooperative provides this option, Lubbock Power and Light does not. Because most of us use LP&L, this represents one more strike against going green.

Wind Power — With some of the windiest conditions in the nation, you would think our city would be ideal for such power. Under certain conditions, this is absolutely true, and the large wind turbines you see throughout our countryside testify to this. It is when you get into urban areas flies start appearing in the ointment. Because of all the surrounding buildings, the wind at street level is highly turbulent. Wind tends to fight itself, and the effective energy available diminishes significantly. To avoid this, most turbine manufacturers recommend that you install your blades at least 30 feet above the tallest building in your vicinity. With zoning, aesthetics, liability, and the fact that you have to get along with your neighbors, I don’t think I need to elaborate on the problems.

Solar Power — Under ideal conditions, wind energy costs one fourth as much as solar. Again, residential conditions for wind are economically brutal and make solar power compare much more favorably. As a result, I consider the sun a much better option for your home. Unfortunately, that is where the good news ends. Although there is much promise in capturing the sun’s heat, generating solar electricity almost never pays here. The high installation costs, lack of incentives, low utility rates and lack of buy back provisions represent too high a barrier much of the time. If you don’t believe me, I recommend going to the following website: usa.sunpowercorp.com/estimator. Here, you can get estimates on costs and benefits under a wide variety of assumptions. Although it might look like there are times when you come out ahead, the fact is that the rates of return are negative. While there might be an exception, I have not been able to create a scenario that pays off in this city.

I am actually very enthusiastic about solar and wind energy’s prospects. In Lubbock, we simply have to come up with superior ideas to make it work. When we do, we will have even better systems because of it and will come out way ahead.

Although the situation is less than encouraging, optimism should never take leave of realism and there is no way to get where you want to go without facing facts.

In a future article, I will outline some strategies for what I consider economical and environmentally sensible energy use. If you have additional ideas on green power, I encourage you to share them. Please visit our Facebook site (Log on to Facebook and enter “Lubbock Savvy Shopper” in the search tool) or write us at SavvyShoppers@lubbockonline.com and let us know your thoughts, ideas, and tips. We have a great community but are always looking for more citizens. Don’t miss out!

Sean Fields is one of The A-J’s Savvy Shoppers. Read his columns Sundays and Wednesdays.